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Accounts receivable, unbilled revenue (contract assets) and unearned revenue or payments on account (contract liabilities)
 9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Accounts receivable, unbilled revenue (contract assets) and unearned revenue or payments on account (contract liabilities) Revenue
    Revenue disaggregated by customer profile is as follows:
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
(in thousands)(in thousands)
Clients 1-5525,806 269,460 1,242,446 802,503 
Clients 6-10283,003 89,062 472,788 249,807 
Clients 11-25398,816 118,156 704,312 344,463 
Other658,727 225,051 1,176,159 640,286 
Total$1,866,352 $701,729 $3,595,705 $2,037,059 

Revenue from individual customers greater than 10% of consolidated revenue in the respective periods was as follows:
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Customer:
Customer A*12.4 %*11.5 %
Customer B***10.7 %
*Less than 10%
Accounts receivable, unbilled revenue (contract assets) and unearned revenue or payments on account (contract liabilities)
    Accounts receivables and unbilled revenue are as follows:
September 30, 2021December 31, 2020
(in thousands)
Contract assets:
Billed services (accounts receivable)$1,345,588 $722,420 
Unbilled services (unbilled revenue)550,692 428,684 
Accounts receivable and unbilled revenue1,896,280 1,151,104 
Allowance for credit losses(7,262)(7,149)
Accounts receivable and unbilled revenue, net$1,889,018 $1,143,955 
    
Unbilled services and unearned revenue or payments on account (contract assets and liabilities) were as follows:
(in thousands, except percentages)September 30, 2021December 31, 2020$ Change% Change
Unbilled services (unbilled revenue)$550,692 $428,684 $122,008 28.5 %
Unearned revenue (payments on account)(1,349,000)(660,883)(688,117)104.1 %
Net balance$(798,308)$(232,199)$(566,109)243.8 %

    Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers. We record assets for amounts related to performance obligations that are satisfied but not yet billed and/or collected. These assets are recorded as unbilled services and therefore contract assets rather than accounts receivables when receipt of the consideration is conditional on something other than the passage of time. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations or billed in advance of the revenue being earned.

Unbilled services/revenue balances arise where invoicing or billing is based on the timing of agreed milestones related to service contracts for clinical research. Contractual billing arrangements in respect of certain reimbursable expenses (principally investigators) require billing by the investigator to the Company prior to billing by the Company to the customer. As there is no contractual right to set-off between unbilled services (contract assets) and unearned revenue (contract liabilities), each are separately presented gross on the Condensed Consolidated Balance Sheet.

Unbilled services as at September 30, 2021 increased by $122.0 million compared to December 31, 2020. Unearned revenue increased by $688.1 million over the same period resulting in a decrease of $566.1 million in the net balance of unbilled services and unearned revenue or payments on account between December 31, 2020 and September 30, 2021. These fluctuations are primarily due to the Merger with PRA on July 1, 2021 but also partly due to timing of payments and invoicing related to the Group's clinical trial management contracts. Billings and payments are established by contractual provisions including predetermined payment schedules which may or may not correspond to the timing of the transfer of control of the Company's services under the contract. Unbilled services arise from long-term contracts when a cost-based input method of revenue recognition is applied and revenue recognized exceeds the amount billed to the customer.
    As of September 30, 2021 approximately $13.0 billion (September 30, 2020: $6.1 billion) of revenue is expected to be recognized in the future in respect of unsatisfied performance obligations. The Company expects to recognize revenue on approximately 49% of the unsatisfied performance obligation over the next 12 months, with the remainder recognized thereafter over the duration of the customer contracts.